Canadian GDP Growth Slows to 0.4% QoQ in Q2

In the second quarter of 2013, Canadian GDP grew 0.4 percent quarter-on-quarter, following 0.5 percent growth in the first quarter, mainly due to a drop in investment.

Final domestic demand rose 0.6 percent in the second quarter. Household final consumption expenditure advanced 0.9 percent, led by higher spending on durable goods (+3.2 percent) and services (+0.7 percent).

Government final consumption expenditure rose 0.6 percent, the fourth consecutive quarterly gain.

Business gross fixed capital formation edged down 0.1 percent in the second quarter, despite a 1.3 percent increase in investment in residential structures. Investment in non-residential structures and machinery and equipment was 0.6 percent lower, while outlays on intellectual property products declined 2.3 percent.

Exports edged up 0.2 percent in the second quarter, after advancing 1.3 percent in the first quarter. Imports were up 0.4 percent, following a 0.6 percent gain in the first quarter.

Inventory accumulation slowed in the second quarter as businesses added $5.2 billion worth of goods to inventories, down from the $7.7 billion added in the first quarter. The economy-wide stock-to-sales ratio was unchanged from the previous quarter.

Expressed at an annualized rate, real GDP expanded 1.7 percent in the second quarter. By comparison, real GDP in the United States rose 2.5 percent.

Canadian GDP Growth Slows to 0.4% QoQ in Q2

Statistics Canada | Joana Taborda |
8/30/2013 1:44:50 PM